The Regulatory Authority has moved to clear a major roadblock for companies looking to install large solar systems, issuing an interim decision that finally sets out how much firms can earn for sending excess power back to Belco.

The ruling is meant to give businesses the certainty they need to invest in renewable energy at a time when electricity costs remain a top concern.

The new rules create the first feed-in tariff methodology for Bulk Generation Sole Use Installation licence holders, a category introduced last year to allow hotels, warehouses, campuses and other large facilities to generate their own power and export any unused amount to the grid. Until now, there was no way for these applications to be approved, leaving several planned projects stuck in limbo.

The RA said the lack of a FIT framework had created a regulatory bottleneck, noting that “the absence of a feed-in tariff methodology is creating regulatory uncertainty and impeding the processing of BGSUI licence applications and the development of renewable energy projects”. It also meant the RA could not set export caps or decide how Belco should compensate generators for the excess power they feed into the grid.

The RA also said it issued the decision now because further delays would undermine the island’s renewable-energy goals. In the ruling, the Authority stated that “delay in establishing the feed-in tariff methodology directly conflicts with Bermuda’s renewable energy policy objectives”.

The interim decision follows a two-month consultation period earlier this year, which drew no public submissions. The RA said the absence of objections helped justify moving ahead quickly, adding that “the absence of objections or concerns suggests broad acceptance of the proposed methodology, or at minimum, no significant opposition to its implementation”.

The FIT rules are designed to protect other customers by making sure BGSUI exports are cost-neutral, based on the power Belco avoids generating itself rather than on subsidies.

The interim methodology takes effect once it is Gazetted and will stay in place for up to six months, or longer with ministerial approval, while the RA completes the final version.